Buying advice?

G

Green100

Registered User
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Need some advice please..
The adjacent semi-detached, owned by landlords for years. Every year, new set of tenants, which invariably leads to some confrontation over noise (think 3am after nightclubs). Bank took possession in January of the "portfolio" & the adjoining semi-d went on the market yesterday.

I am thinking of buying, as the price is low.


What are the rules applicable (if any) when a person makes an offer on a house?
  • If I offer under the asking price, what is the auctioneer's next steps?
  • If I offer the asking price, are those rules different?
  • If somebody else offers more after my offer, the old term gazumping comes to mind.
also, in regard to my own bank (I'm a customer for 26 yrs),
I contacted them in January, went through the hoops of making a mortgage application. Was told that as the property was not for sale in the weeks thereafter, that they could not give me a definitive response in regard to the application. They did advise me that when the property came to market, that I should contact them with asking price.
Talked to them yesterday, they tell me that they're VERY busy, processing 6 applications this week, so cannot possibly come back to me until next Friday. Can that be right? I would have assumed it's a spreadsheet somewhere that was waiting on the asking price to be slotted in... no?

Thanks.
 
I would assume that everyone is chacing his arm with a bid under the asking price these days. You can always come back with a higher bid
 
The banks put the application in and then send it to their underwriters. Process does take time and they review the lending criteria each time. So coming back a day later (Yesterday to Friday is a day later) is a pretty good turn around.

For the address thing, my application got around this by picking a semi-random house. When I finally choose somewhere, they'll just change the address on the application and adjust the values. It should be much quicker as it won't have to go through the full application process but since I haven't actually gone this far, I can't say it will or not.
 
What are the rules applicable (if any) when a person makes an offer on a house?
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The only rule is that nothing matters until both parties have signed and exchanged the contract for sale.

You can offer the asking price and if someone else comes along with a higher offer, then they will decline your offer and invite you to offer more.

It's very difficult to know what to offer. Most auctioneers expect offers of around 20% to 30% below the asking price and so they set the asking price accordingly. Some set the price more realistically and get a few offers close to or even at the asking price.

I am thinking of buying, as the price is low.
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If it seems that low, then maybe get a friend to view and to sound out a bid around 30% below the asking price. Then you can make your bid in the light of the auctioneer's response.

"gazumping" only happens when they have accepted your offer and then accept a higher offer. It doesn't happen too often in the current market.

If your lender has not approved the loan, then the estate agent may continue to show the house even after accepting your offer.
 
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